Zhongji Innolight Co. is reportedly pricing its HK$53.4 billion ($6.8 billion) Hong Kong listing below the maximum. This move positions it for the city's largest initial public offering in seven years.
The company, a maker of optical transceivers crucial for data centers and AI computing systems, is aiming for an $8 billion Hong Kong IPO. This would make it Asia's second-largest listing this year, following Chinese chipmaker CXMT Corp's $8.6 billion IPO on Shanghai’s STAR market. The shares are expected to be sold at a price up to HK$1,010 ($128.81) each, representing a 13.2% discount to its Shenzhen-listed stock's closing price. The company had previously considered a 15% to 20% discount.
Innolight’s revenue surged 192% to 19.5 billion yuan ($2.9 billion) in the first three months of this year, with profit jumping 274% to 6.32 billion yuan. For 2025, profit rose 116% to 11.58 billion yuan on revenues of 38.24 billion yuan. The United States was its largest market, contributing 61.7% of revenue in the first quarter of this year.
The proceeds from the listing are slated for research and development, global production expansion, supply chain strengthening, acquisitions, investments, and working capital. Innolight has been recognized as the world’s largest optical interconnect solutions provider by revenue for five consecutive years since 2021. Hong Kong new listings have collectively raised $33.8 billion this year, more than double the $16.4 billion raised in the same period last year.
